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Photo = Yonhap news |
[Alpha Biz= Paul Lee] Daol Investment & Securities has raised its target price for JYP Entertainment from 67,000 KRW to 100,000 KRW, citing increased concert attendance for its groups, particularly Stray Kids. The firm also adjusted its fourth-quarter earnings estimate upward, reflecting stronger-than-expected performance.
Daol noted that JYP’s concerns over weak intellectual property (IP) performance among younger groups have been largely alleviated with the debut of its new boy group, “KID FLIP.” The brokerage also highlighted Stray Kids’ expanding concert attendance as a key driver of its earnings revision.
The estimated operating profit for Q4 2023 was raised by 20%, from 31.2 billion KRW to 37.4 billion KRW. The revision factors in strong concert attendance, including Stray Kids’ "dominATE" tour, which attracted 300,000 attendees, and TWICE’s Japan concerts, which drew 270,000 attendees in Q3 but contributed to Q4 earnings. This is expected to boost concert revenue by 16% quarter-on-quarter.
Album sales are also expected to see a modest 0.4% quarter-on-quarter increase, with estimates including 2.28 million copies of Stray Kids' special album, 940,000 copies from TWICE, and 710,000 from ITZY.
Alphabiz Reporter Paul Lee(hoondork1977@alphabiz.co.kr)
